MP - Why MP Materials Stock Rallied 20% in Early Trading Today
Shares of rare-earth miner MP Materials (NYSE:MP) rose dramatically in early action, gaining just over 20% in the first hour or so of trading. Although the stock gave back some of that gain, by 12 p.m. EST it was still up a hefty 16%.
Although there didn't appear to be any specific news out of MP Materials that would have led to today's early advance, the real story here is much bigger than a single day. MP Materials is a U.S.-based rare-earth metals producer. Rare-earth metals are used in technology products, such as the magnets used in electric automobiles. The vast majority of the industry is located in Asia, which has some people worried about access to these vital high-tech materials. In fact, China recently passed a law that would allow it to restrict exports of these metals -- a move that could cripple other countries if they were reliant on China for such materials.
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Why MP Materials Stock Rallied 20% in Early Trading Today